Thursday, 31 July 2014
Last updated 7 hours ago
Jun 13 2008 | 10:55am ET
The Securities and Exchange Commission has issued cease-and-desist proceedings against DKR Oasis Management Company, a global hedge fund shop.
According to the SEC, DKR Oasis, which manages long/short equity, volatility and convertible arbitrage investments, shorted securities during the five business days before the pricing of the offering, and then covered the short positions with securities purchased in the offering, earning a profit of $185,000.
Specifically, following the market close on May 10, 2005, shares of Satyam Computer Services were offered on a follow-on basis at $21.50 per American Depositary Receipts. On the previous day, DKR Oasis shorted 100,000 Satyam ADSs at $23.35 per ADS and one day after the offering bought 200,000 ADSs at $21.50 per ADS in the offering. It used 100,000 of the offering ADSs to cover its short position created during the restricted period and made a profit of $185,000.
DKR Oasis is ordered to pay disgorgement of $185,000, prejudgment interest in the amount of $37,413, and a civil money penalty of $60,000 to the U.S Treasury.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…